environmentaleconomic accounting Direct and indirect CO2 emissions in Germany, Federal Statistical Office of Germany

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1 environmentaleconomic accounting Direct and indirect CO2 emissions in Germany, Federal Statistical Office of Germany

2 Published by: Statistisches Bundesamt (Federal Statistical Office), Wiesbaden Homepage: Authors: Helmut Mayer, Christine Flachmann You may contact us at: Central Information Service Tel.: +49 (0) 611 / Periodicity: non-recurrent Published 1 April 2016 Order number: [PDF] Statistisches Bundesamt, Wiesbaden 2016 Reproduction and distribution, also in parts, are permitted provided that the source is mentioned.

3 Contents Page Introduction... 4 CO2 emissions by different concepts... 5 Supply and use of CO 2 emissions... 8 Direct CO 2 emissions of private households and CO 2 content of consumer goods... 9 CO 2 emissions of imports by country of origin CO 2 emissions of exports Foreign trade balance of CO 2 emissions List of tables Table 1 Direct and indirect greenhouse gas emissions Table 2 Direct and indirect CO 2 emissions in Germany Table 3 Direct CO 2 emissions of private households und CO 2 content of consumer goods Table 4 Purchases of private households Table 5 CO 2 emissions of consumer goods Table 6 CO 2 emissions of imports 2012 by country of origin Table 7 CO 2 emissions of exports Table 8 Exports Table 9 Shares for imported intermediate goods by industries List of figures Figure 1 CO 2 emissions in Germany Figure 2 Direct and indirect CO 2 emissions in Germany Figure 3 Direct CO 2 emissions of private households and CO 2 emissions of consumer goods 2012 by area of demand... 9 Figure 4 CO 2 emissions of exports by type of goods Figure 5 CO 2 emissions at the production of imports and exports Abbreviations bn = billion EEA = Environmental-Economic Accounting EUR = Euro IPPC = Intergovernmental Panel on Climate Change LULUCF = Land use, land use change, forestry mn = million UNFCCC = United Nations Framework Convention on Climate Change % = percentage % points = percentage points Explanation of symbols X = Cell blocked for logical reasons Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

4 Introduction Carbon dioxide (CO 2 ) emissions can be outlined both in terms of origin and of consumption. As part of international reporting of greenhouse gases CO 2 emissions are reported in terms of origin for a certain territory based on emission sources 1. When they are considered from a consumer s point of view the emissions are determined in connection with the consumption of goods and are assigned to the various consumption categories. A distinction is drawn between consumption of private households, public consumption, gross fixed capital formation and exports. In doing so a fundamental distinction is made between domestic consumption and exports. The domestic consumption of goods causes emissions domestically and abroad. These emissions can be assigned to domestic consumers. The exports likewise cause emissions in Germany and abroad and are assigned to the rest of the world 2. The calculations are based on an extended hybrid input-output model with a regionalisation of the import flows 3. 1 Greenhouse inventories as part of Kyoto Reporting in accordance with the UN Climate Convention (UNFCCC). 2 See also: Mayer, H.: Umweltökonomische Aspekte der Globalisierung in: Wirtschaft und Statistik, No. 12/2007, pp A comprehensive description of the extended Input-Output model is available at DESTATIS: A short overview on the methods used is included in the paper CO 2 content of German import and export goods (Wiesbaden, February 2014) available in the Internet: Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

5 CO 2 emissions by different concepts In 2012 CO 2 emissions in Germany within the delimitation of the Environmental-Economic Accounting 4 amounted to 983 million tonnes. In 2005 the emissions were at 978 million tonnes. The reason for the slight rise in CO 2 emissions in Germany was an increased energy consumption of biomass with associated CO 2 emissions. Between 2005 and 2012 the emissions from the combustion of biomass increased substantially (2005: 65 million tonnes, 2012: 98 million tonnes). The emissions within the delimitation of the Environmental-Economic Accounting include in addition to the emissions in the IPCC delimitation 5 also emissions from international shipping and aviation but only those of residential units 6. This delimitation also includes CO 2 emissions arising from fuel purchases abroad in road traffic and sea transport by German residents (private households and companies). CO 2 emissions according to the IPCC concept have dropped by 5.7 % from 868 million tonnes (2005) to 818 million tonnes (2012) (see figure 1). Figure 1 CO 2 emissions in Germany mn. tonnes CO2-emissions of IPCC biomass bunkerings of shipping/air transport bunkerings of road tranport and 2010: data status IPCC 2015, 2005: In 2012 domestic emissions have totalled 983 million tonnes. 768 million tonnes were caused by domestic industries, 214 million tonnes by private households. In 2012 CO 2 emissions at the production of imports amounted to 451 million tonnes. That is more than half 58.7 % of the emissions of domestic origin. Indirect emissions by industries and direct emissions of private households add up to 1,434 million tonnes in This total is based on measuring and allocating emissions from a production point of view. 4 Including emissions from biomass, from bunkering by residents in international shipping and aviation and from fuel purchased abroad by residents but excluding bunkering of non-residents on the territory. 5 IPCC: Intergovernmental Panel on Climate Change. Emissions excluding the position Land use, land use change, forestry (LULUCF). 6 In international reporting of greenhouse gases all emissions from bunkering by international shipping and aviation in Germany are shown as figures for information purposes. The level of these emissions is not included in the standardised final record. Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

6 CO 2 emissions by different concepts Based on the results of the model calculations CO 2 emissions can also be outlined from a consumption point of view (see figure 2). Here a distinction is made between emissions to be assigned to domestic consumption and emissions arising from the production of exports. Figure 2 Direct and indirect CO 2 emissions in Germany 2012 mn. tonnes imports 563 exports CO 2 - emissions on national territory domestic production embodied CO 2 - emissions 657 domestic consumption private households 214 supply side demand side 1 Residents concept, incl. biomass and bunkering. The emissions related to domestic consumption can be compared with domestic emissions derived from the production point of view. After deducting the CO 2 content of exports (563 million tonnes) from total emissions these results in CO 2 emissions of 871 million tonnes for domestic consumption. This figure is 111 million tonnes below the CO 2 emissions arising on the territory. The reason for the lower CO 2 figure for domestic consumption is the higher emission content of exports compared with imports. Carbon dioxide emissions and other greenhouse gases In terms of greenhouse gases in addition to CO 2 emissions, the methane (CH 4 ) and nitrous oxide (N 2 O) emissions are of great importance. By calculating the direct and indirect emissions of these gases, we get the cumulative emissions of the three most important greenhouse gases. In 2012 these amounted to million tonnes of CO 2 equivalents. The CO 2 emissions had a share of 87.5 %, CH 4 emissions of 8.0 % and the N 2 O emissions of 4.6 % (see table 1). For emissions emitted on the territory the share of CO 2 of total greenhouse gases (91.0 %) was higher than for the imports (80.6 %). In terms of imports, CH 4 emissions account for 12.7 %, the N 2 O emissions of 6.7 %. Emission sources of CH 4 emissions are mainly the coal industry, the oil and gas extraction (especially pipeline transport), landfill gases in waste disposal and livestock in agriculture. For N 2 O, specific processes in the chemical industry, in the generation of energy, during the combustion of fuels for transport and in fertilization in agriculture play a role. Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

7 CO 2 emissions by different concepts Table 1 Direct and indirect greenhouse gas emissions 2012 Greenhouse gas Total Of which emissions mn t CO 2 equivalent Total on the territory abroad 1 Carbon dioxide... 1, Methane Nitrous oxide Total... 1,639 1, share of total % Carbon dioxide Methane Nitrous oxide Sum share of sum % Carbon dioxide Methane Nitrous oxide Sum At the production of imported consumer goods and inputs for intermediate production of consumer goods. Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

8 Supply and use of CO 2 emissions From 2005 to 2012 direct CO 2 emissions from the combustion of fuels increased in Germany by 0.5 % from 978 million tonnes to 983 million tonnes. In 2012 thereof 214 million tonnes were emitted by households this was 21.8 % of total direct emissions in Germany and 768 million tonnes by industries. In addition to the direct emissions on the territory, emissions generated abroad at the production of German imports are to be considered when talking from a consumer s point of view. These (indirect) emissions have increased by 16.6 % from 387 million tonnes (2005) to 451 million tonnes (2012). The share of these emissions of total supply increased from 28.4 % (2005) to 31.5 % (2012). Table 2 Direct and indirect CO 2 emissions in Germany /2005 mn t % Direct emissions on territory , Private households Industries Imports Domestic supply... 1,365 1,446 1, Private households Exports Goods for domestic consumption Consumer goods Government purchases, capital formation Total use... 1,365 1,446 1, in % of supply/use % points Direct emissions on territory Private households Industries Imports Total supply/use X Private households Exports Goods for domestic consumption Consumer goods Government purchases, capital formation As defined in Environmental-Economic Accounting (residents concept, incl. emissions from the combustion of biomass). At the use side exports have the highest emissions and its share in total emissions has risen sharply from 35.7 % (2005) to 39.3 % (2012). In 2012 the share of consumer goods was 30.6 %. However, direct emissions of households and those of consumer goods together still form the largest source of emissions with 45.6 % of all emissions (2012). Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

9 Direct CO 2 emissions of private households and CO 2 content of consumer goods Direct CO 2 emissions of households arise through the combustion of fuels in road transport and in the area of housing. These direct emissions have decreased from 231 million tonnes (2005) to 214 million tonnes (2012). The emissions from the consumption of fuels for transportations have decreased by 3.9 %. Due to the temperature-affected decreases in consumption of fuels for heating, a decrease in emissions resulted for the fuels in compared to Table 3 Direct CO 2 emissions of private households and CO 2 content of consumer goods /2005 mn t % Direct emissions Fuels (transport) Fuels (housing) CO 2 content of consumer goods ,1 of which :... Energy products Goods Services Total emissions share of total emissions in % Direct emissions X CO 2 content of consumer goods X Energy products X Goods X Services X tonnes per capita Total emissions Incl. trade and transport services. In 2012 direct emissions accounted for 32.9 % of total direct and indirect emissions of households. Indirect emissions 438 million tonnes in 2012 are accumulated to more or less equal portions to the use of energy, products and services. The emissions of energy products arise mainly at the power plants generating electricity for households. Although the emission coefficients CO 2 emissions per kwh produced remained almost constant between 2005 and 2012, electricity consumption of households decreased by 6.3 % during that period. Nevertheless, between 2005 and 2012 the consumption of district heating increased very strong by 13.0 %. This has led to a corresponding increase in emissions of heating plants 7 The year 2012 was a relatively warm year regarding the demand for heating energy. Between 2005 and 2012 temperature adjusted a decline by 5.5 % of the emissions can be reported. See tables of Environmental-Economic Accounting, Part 3 Energy, table Total CO 2 emissions of private households direct and indirect. schnitt/umweltnutzungundwirtschafttabelle teil_2.pdf? blob=publicationfile Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

10 Direct CO 2 emissions of private households and CO 2 content... The emissions of the service sector also include emissions of the trade and transport industries, which provide services to households at the distribution of goods. The emissions of the service sector have fallen in total by 1.2 %. Emissions however, have changed differently within the service sector. For example, the emissions from the transport industry, in particular because of the sharp rise in emissions from aviation, increased by 21.4 % during this period. Between 2005 and 2012 price-adjusted purchases of private households in Germany have increased by 5.2 % (see table 4). Purchases of imported consumer goods increased from 120 bn. EUR to 132 bn. EUR ( %). Their share in total purchases accounts for about 10.2 % (2012). Considering only the purchases of products, then the import share is much higher: in 2012 the import share of products (excluding energy) was 30.7 %. Table 4 Purchases of private households Year Domestic purchases 1 Purchases 2 CO 2 domestic imports on the territory total production and imports total total including: products 3 including: products 2000 = 100 EUR bn mn t ,9 1, , ,0 1, , ,4 1, , ,2 1, , change in % 2012/ in % of total in % of goods in % of total in % of goods X X X X X X X X 1 Domestic purchases of private households, price-adjusted, chain-linked index. 2 At basic prices without net taxes; data from the input-output tables. 3 Purchases of goods excluding energy. In 2012 about 65 % of the emissions from consumer goods 285 million tonnes have been generated in Germany, 35 % or 153 million tonnes abroad (see table 5). The emissions abroad can be separated in roughly equal parts on emissions for intermediate goods and of finished consumer goods. The emissions of intermediate goods are a portion of total emissions of imported intermediate goods. This portion is linked to intermediate goods that are used domestically at the production of consumer goods. Comparing the trend of emissions with the change of price-adjusted purchases shows that emissions both domestically and abroad have increased. The trends can be influenced either by changes in the composition of purchases by commodity or when looking at the imports by origin by changes in the supplying countries. Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

11 Direct CO 2 emissions of private households and CO 2 content... Table 5 CO 2 content of consumer goods Year CO 2 content total on the territory abroad at the production of intermediate consumption for domestic consumption final goods mn tonnes change in % 2012/ in % of total For example, price-adjusted purchases of services showed an increase of 7.2 %, much more than the increase of total purchases 8. The purchases of everyday consumer goods, however, declined by 5.7 %. Since the production of goods usually requires a higher energy input and thus higher CO 2 emissions than average, a shift of purchases towards services contributes to a reduction in total emissions. However, certain service activities, such as transport activities, also have relatively high specific emissions. Also telecommunications services cause when involving backward linkages high emissions. Direct and indirect emissions can be grouped according to areas of demand 9. About 38 % of the emissions can be assigned to the area of housing, another 25 % are assigned to transport. These areas already account for more than two thirds of total emissions. Another important area is food with a share of 11.9 %. The remaining emissions can be attributed with 13.2 % to miscellaneous products and 12.3 % to the services. 8 See Volkswirtschaftliche Gesamtrechnungen (National Accounts), Fachserie 18 Reihe 1.4, 2012, Tabelle Figures according to this grouping show emissions of trade industries at the corresponding product items. Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

12 Direct CO 2 emissions of private households and CO 2 content... Figure 3 Direct CO 2 emissions of private households and CO 2 emissions of consumer goods by areas of demand 2012 Percentage Services Housing (direct emissions) Products 13.2 total: 653 mn tonnes 19.9 Food 11.9 Housing (indirect emissions) Fuels (direct emissions) Transport (excluding fuels) Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

13 CO 2 emissions of imports by country of origin In 2012 by far the highest emissions resulting from German imports occurred in China: 37.6 million tonnes, followed by the Netherlands (33.9 million tonnes) and Russia (26.4 million tonnes). China is second in imports of commodities, but first at CO 2 emissions. This is mainly due to the energy- and CO 2 -intensive production of commodities by using a high amount of coal at the generation of electricity.the high CO 2 content of imports from the Netherlands can be explained by the relatively high emission coefficients for the most important import commodities: The Netherlands has the highest shares of imports in the case of agricultural products, food products and basic chemicals. The industries producing these products have relatively high emission coefficients compared to other European countries. In the case of electricity generation this is the industry that accounts for by far the most emissions the Netherlands also has relatively high emission coefficients. Tab 6 CO 2 emissions of imports 2012 by country of origin Country Co 2 emissions Total imports total of which: final use intermediate consumption products 1 mn t % rank mn t EUR mn % rank Total , Netherlands , China , France , United States , Italy , United Kingdom , Russia , Switzerland , Belgium , Austria , Poland , Czech Republic , Norway , Spain , Japan , Sweden , Brazil , Sum , Rest , Source: Foreign Trade Statistics. Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

14 CO 2 emissions of exports Between 2005 and 2012 CO 2 emissions of exports as a whole rose by 15.4 % from 488 million tonnes to 563 million tonnes. In 2012 domestic production with 352 million tonnes contributes to somewhat more than half (62 %) of these emissions (see table 7). The remaining emissions 211 million tonnes are attributed to the production of imported raw materials and supplies used at the domestic production of exports. These emissions increased strongly both in absolute terms ( %) and pro rata. In 2005 these emissions accounted for 37.3 % of total emissions, in 2012 this share rose to 38.5 %. In spite of the rise in the import portion, the domestic manufacture of exports is the most significant source for CO 2 emissions in Germany. In % of all CO 2 emissions from domestic industries arose in the production of exports. In 2005 the share was just under 38 %. Table 7 CO 2 emissions of exports /2005 mn tonnes % Exports Domestic production Imported intermediate consumption Imports Exports less Imports Domestic production in % of domestic production % points Exports from domestic production The substantial rise in domestic and foreign CO 2 emissions for exports can be explained by a sharp increase of exports between 2005 and 2012 (see table 8). Exports at current prices (excluding re-exports) rose by 46.5 % from 2005 and Price-adjusted exports increased by 36.7 %. Table 8 Exports /2005 EUR bn % Total exports (fob) , , , cif/fob correction Final consumption expenditure of non-residents in the territory Re-exports Exports (adjusted) , , , Products , , Services price-adjusted; chain index (2005 = 100) Exports X Products X Services X 1 Cif: cost, insurance and freight; fob: free on board. Source: Federal Statistical Office; Input-Output Accounts Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

15 CO 2 emissions of exports In parallel with the increase of exports domestic industries have increased the amount of imported materials and supplies as a proportion of their intermediate consumption. This share increased from 19.7 % to 20.7 % (see table 9). This increase is a main reason for the rise of embodied emissions of imported materials and supplies. Within the industries the manufacturing of chemicals showed a significant rise in the import share with an increase from 22.1 % (2005) to 25.4 % (2012). Table 9 Shares for imported intermediate goods by industries /2005 % % points Total industries Thereof: Manufacture of motor vehicles Manufacture of machinery Manufacture of chemicals Source: Input-Output Accounts (several years of publications) In the case of exports most emissions arise in the production of chemical and plastic products (22.3 %) and of motor vehicles (12.9 %). The export of metal products with a share of 8.4 % also causes high emissions. Figure 4 CO 2 emissions of exports by type of goods 2012 Percentage Services Chemicals, plastics, rubber Other goods mn. tonnes 12.9 Motor vehicles Machinery Metal products Energy carrier Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

16 Foreign trade balance of CO 2 emissions In 2012 CO 2 content of imports was 451 million tonnes (see figure 5), CO 2 content of exports was 563 million tonnes. This resulted in a CO 2 -surplus of exports over imports of 112 million tonnes. Figure 5 CO 2 emissions at the production of imports and exports 2012 mn. tonnes imported goods for interm. consumption imported good for final use exported goods from imported materials & supply exported goods from domestic production By far the largest portion of CO 2 emissions for imports 345 million tonnes or just under 76 % of total emissions of imports applies to materials and supplies. The production of finished goods (consumer goods and capital goods) accounted only for 106 million tonnes of CO 2. For imports too CO 2 emissions related to (German) exports were the most important driver. In million tonnes of CO 2 arose during the production of materials and supplies for German export production in the supplier countries. That is 38 % of all CO 2 emissions related to imports. These emissions are influenced by the dynamic growth of exports and the increase in the purchase of imported materials and supplies (see tables 8 and 9). Federal Statistical Office, Direct and indirect CO 2 emissions in Germany,

Environmental-Economic Accounting (EEA)

Federal Statistical Office Germany Environmental-Economic Accounting (EEA) Environmental Impacts of Household Consumption in Germany 1995-2005 August 2008 Paper presented at the Input-Output Meeting on